Title
District Attorney recommending the Board receive and file the nineteenth Annual Report on Real Estate Fraud for Fiscal Year 2023-24.
FUNDING: Real Estate Fraud Prosecution Fund.
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DISCUSSION / BACKGROUND
In accordance with Government Code Section 27388(d), the Board of Supervisors is required to annually review the effectiveness of the District Attorney’s Office efforts in deterring, investigating, and prosecuting Real Estate Fraud crime based upon information provided by the District Attorney via an annual report. The report is attached.
As presented during the 19th Annual Real Estate Fraud Committee held on July 11, 2024, the overall number of FY 2023-24 Real Estate Fraud cases reported to the District Attorney’s Office has slightly increased as compared to the year prior. As of June 30, 2024, a total of 18 cases had been reported to and investigated by the office. The number of Notice of Defaults by homeowners has increased by 3% and the number of Notice of Trustee Sales has decreased by 8.5% as compared to prior year data.
This year, the District Attorney’s Office worked several vacation rental fraud cases, and in doing so uncovered a trans-national fraud ring that was also involved in Government Paycheck Protection Program (PPP) Loan fraud to the tune of hundreds of thousands of dollars. One of the bank accounts discovered by search warrants showed over half a million dollars laundered through it over nine months. This information was turned over to the FBI.
In the efforts of providing more outreach to the community regarding the awareness of Real Estate Fraud and rental scams, the District Attorney’s Office has continued to pursue outreach through social media to alert the public to the signs of vacation rental fraud. The District Attorney’s Office also had a booth sent up at the Cameron Park National Night Out community event to raise awareness to real estate fraud. Beginning with this year, the assigned Investigator attended a monthly collaborative meeting with multiple law enforcement agencies, Adult Protective Services, Public Guardian’s Office, County Senior Legal Services and Health and Human Services. Additionally, quarterly meetings were held with the same agencies and expanded to private elderly care companies and financial institutions These meeting have greatly increased the communication and effectiveness in protecting seniors from financial elder abuse involving real estate.
ALTERNATIVES
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PRIOR BOARD ACTION
07/25/2023 Legistar file 23-1368: The Board received and filed the eighteenth annual report on Real Estate Fraud for FY 2022-23.
07/26/2022 Legistar file 22-1294: The Board received and filed the seventeenth annual report on Real Estate Fraud for FY 2021-22 and signed a resolution to suspend the $2.00 recording fee for a term of 3 years, effective October 2022.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Real Estate Fraud Committee
CAO RECOMMENDATION / COMMENTS
Receive and file the report.
FINANCIAL IMPACT
The Real Estate Fraud Prosecution Trust fund beginning balance as of July 1, 2023 was $585,864.91. The FY 2023-24 interest accrued totals $18,980.17, leaving an unadjusted ending balance as of June 30, 2024 in the amount of $604,845.08. The total FY 2023-24 investigation and prosecution expenditures for the Real Estate Fraud Program are estimated at $73,056.25. Following the transfer of expenditures from the Real Estate Fraud Prosecution Fund to the District Attorney’s Office, the FY 2023-24 estimated ending fund balance will be $531,788.83. There is no Net County Cost for this program.
The Real Estate recording fee of $2.00 will continue to be suspended until October of 2025 or until otherwise noted.
CLERK OF THE BOARD FOLLOW UP ACTIONS
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STRATEGIC PLAN COMPONENT
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CONTACT
Vern Pierson, District Attorney